Don’t Invest in Bitcoin until you read it!- All About Bitcoin
Bitcoin is a digital currency that can be used as a medium of exchange between individuals, and each unit you own acts as an asset. It was created in 2009 by an unknown individual or an unknown group of individuals. The person or the group of individuals who created Bitcoin has a pseudo name, “Satoshi Nakamoto”. No one knows the creator of the largest blockchain technology, whether he/she/they is/are alive or dead.
It is easy to get bitcoins. Real money can be spent to buy bitcoins according to their market value. There are many sellers & vendors who accept bitcoins in exchange for their products or services. So, by accepting Bitcoins as a method of payment, bitcoins can be earned.
The most difficult way to get bitcoins is to create it. There is only one method to create bitcoin. People set up powerful computers to carry a process called mining. They get new bitcoins& transactional fees as a reward to do mining. So, basically, when miners solve math algorithms, they mine a block. It usually takes around 10 minutes to solve those high-level algorithms and mine a block.
When they mine a block, they get block rewards in the form of some new bitcoins. Till 210000 new bitcoins are created, 50 new bitcoins can be earned for mining each block. After that, only 25 bitcoins are created as a block reward. This process happens until the block reward decreases so much that no bitcoins could be created. Immediate bitcoin is one of the best website used in bitcoin.
Like real money is stored in a wallet, Bitcoins are stored in a digital wallet. This database of this digital wallet can be in a cloud or as a file on a computer. There is no government or bank control over Bitcoins. So, products from all over the world can be bought or sold using bitcoins.
As Bitcoins doesn’t show the record of users, just their wallet ID, people involved in a particular transaction can not be traced. As taxes are not to be paid, it is cheap for people involved in international transactions. People involved in illegal activities like buying & selling drugs etc. find it safe to pursue their transactions through Bitcoin as they are anonymous.
Bitcoins provide a lot of benefits in an era where there was a need for a digital currency, keeping in mind places where real money lacks. Bitcoins make sure that it’s users are protected from any kind of fraud as it is very difficult to counterfeit bitcoins. Unlike many other assets that we own, bitcoins can be easily converted into cash.
There is a huge demand for bitcoins, so there are people who are ready to buy bitcoins. Also, the transactional fees involved in converting bitcoins into cash or gold is minimal. As it is specified that bitcoins are not governed by the government or banks, there is a very low risk of bitcoins losing their value. Inflation also doesn’t affect its value.
In addition to that, the risk of identity loss is quite less as the information of the user is not shared in the public log; only their wallet ID is shared. There is no need for a certificate or a license, unlike stock trading, it is very easy to buy and sell bitcoins. The price of bitcoins keeps changing every now and then, which opens a new door for investment and speculation. There are many people who use bitcoins to make short-term or long-term gains.
Every coin has two sides; the same is the case with bitcoins. There are many advantages of using bitcoins, but there are several limitations too. It is important to have a look at the other side of the coin before transacting in bitcoins so that it becomes easier to stay safe from any kind of loss. As there is nobody regulating the use of bitcoins, the users of bitcoins are exposed to a number of malpractices such as hacking.
Hacking is the biggest concern of any person using bitcoin as there have been several instances recorded where people have lost all their investment. Bitcoins are stored in virtual wallets, so there is a chance that the files containing the database may go corrupt or be damaged by viruses. The user may happen to lose their bitcoins this way. The rates of bitcoins are swinging, so there is a possibility of huge losses.
The future of bitcoins is still unpredictable, but it is growing gradually. It has various limitations, but the advantages outweigh its limitations.